The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on ANI Technologies Private Limited, which operates Ola, over its advance tipping feature that encouraged passengers to pay extra before securing a ride.
According to a report by Bar and Bench, the regulator's Nov 10 order found that the practice constituted misleading advertising, an unfair trade practice and an unfair contract under the Consumer Protection Act, 2019.
The CCPA directed Ola to discontinue the practice, remove misleading prompts and submit a compliance report within 15 days.
The proceedings followed a complaint received in May 2025 concerning messages displayed while passengers waited for drivers to accept bookings.
The application suggested that adding a tip could improve the likelihood of getting a ride sooner.
Initially, customers could select additional payments ranging from ₹10 to ₹40. The platform subsequently allowed tips of up to ₹499.
Ola argued that these payments were voluntary and transferred entirely to drivers without deductions.
The company maintained that the feature encouraged drivers to accept less attractive bookings, particularly when they needed to travel longer distances to collect passengers.
It also said tipping did not guarantee faster ride confirmation.
However, the CCPA found inconsistencies between Ola's explanations and the promotional messages displayed to consumers.
The regulator rejected Ola's argument that the additional payment represented an ordinary tip.
It observed that tipping generally rewards services already provided, whereas the platform requested payments before drivers accepted bookings.
The CCPA classified the interface as confirm shaming, a prohibited dark pattern under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
It also rejected the company's argument that the feature affected relatively few customers.
The Authority noted that more than one lakh ride requests in a single city had involved the feature, making its reach significant.
Ola must remove interface elements that pressure consumers into additional payments before booking confirmation and comply with the applicable consumer protection guidelines.
